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Is there anyway when setting parameters for ROP to NOT include production orders?  For purchased component parts, I do not want the calculation to include production orders as that qty should be “allocated” to that production order, therefore shouldn’t count as available inventory.

I don’t think I follow your question - can you provide an example?  

MRP will consider all items with the MRP check-box set

MRP will only include quantity in locations where the MRP check-box is set


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